Prakash Diwan bullish on auto space

Prakash Diwan of Altamount Capital Management told CNBC-TV18, "One name that comes to our mind and we have been working on is the area of brake manufacturer. We saw Sundaram Brake Linings do very well but Rane Brake Linings is another company that has been there. It is getting into that scale which is important. More importantly you will see a whole new set of players that will come into this. Everybody is aspiring to now be global. If there is some sort of an incentive that comes through from may be a taxation perspective to scale up the auto ancillary business, interest rate cuts are going to benefit auto much more sharper than even banks because there is a first one that gets all the blocks because of the funding side."

"I am still very bullish but I still would prefer to go with the larger players than the OEMs at this point in time. Ashok Leyland for instance has crossed our targeted levels of Rs 70 plus but it still continues to surprise everybody with the traction that is there. Auto ancillary will see some new names post the Budget," he said.